이 기사는 2021년 09월 29일 08:07 thebell 에 표출된 기사입니다.

Showbox, South Korean film production and distribution company, turns out to have invested in Siren Pictures, which produced the hit Netflix series "Squid Game."

Showbox, formerly known as Mediaplex, invested a total of 100 million won ($85,000) in Siren Pictures as of the end of 2017, according a regulatory filing.

The investment confirmed Showbox’s ability to select investment opportunities in the content sector although its investment in Siren Pictures was not large, industry watchers said.

After its investment in Siren Pictures, Showbox has continued to launch hit movies, which heightens hopes for the company to become an intellectual property (IP) powerhouse by adding over-the-top (OTT) operator networks like Netflix and Coupang Play.

Established in 2011, Siren Pictures is 100% owned by CEO Kim Ji-yeon. Showbox made its investment in Siren Pictures in a bid to discover promising production companies. Siren Pictures said it is true that Showbox had financed the company but the financing had nothing to do with “Squid Game.”

“It is false information that we invested 1 billion won in Siren Pictures to secure a stake. We invested 100 million won in a film project,” said an official at Showbox. “We made several more investments that are not disclosed, but they have nothing to do with 'Squid Games'.”

Showbox’s stock surged 25.9% on September 23 and 21.3% to 6,260 won on the next day thanks to the popularity of Netflix’s new hit series. In contrast, shares of domestic drama production companies related to global OTT providers have given up gains.

Film industry insiders are favorable to Showbox's content selection capability in line with its investment in Siren Pictures. Films that were distributed by Showbox, including "The Man Standing Next" and “Sinkhole” attracted 4.75 million and 2.18 million moviegoers, respectively. Although the company is a traditional media company dedicated to film investment, production and distribution, there is plenty of room to improve its business model if it becomes an IP service provider focusing on OTT content.

Showbox plans to expand its business by jointly producing TV dramas with management agency IOK Company. Showbox produced cable TV drama “Itaewon Class” last year. (Reporting by Pil-woo Choi)